The Relationship Between Religious Denomination and Net Worth

Abstract: Religious belief has the potential to shape the way we think and consequently affect the decisions we make. Therefore, I explore whether religious choice, potentially through its engrained view on money and wealth, is associated with the accumulation of net worth. While I explore multiple denominational influences, to provide a more homogenous example I focus on survey respondents who identify as Baptists, finding that Baptists (in contrast to other more mainline denominations) accumulate lower levels of net worth. The patterns I observe are consistent with the possibility that social interaction and confirmation influence financial behavior. What is not clear, however, is whether this relationship is in fact causal or if the choice to be Baptist is in some way also driven by net worth (i.e. an issue of endogeneity). As such, I view this research as only a first step in exploring the growing field of the sociology of economics as it relates to religion.

Keywords: Social Interaction, Confirmation, Net Worth, Religion, Baptist

JEL Classification: G41, G51